EURUSD Likely Created Short-term Top

Euro moved lower during the past couple of sessions against the US dollar, and traded below 1.0800.

The EURUSD pair cleared the 200 simple moving average on the 4-hours chart, which is a bearish sign.

Euro Zone CPI released by the Eurostat registered a rise of 0.2% in December 2015, compared with the same month a year ago whereas the forecast was of 0.3%.

Euro Zone Core Consumer Price Index also came below the forecast and increased by 0.8%.

Technical Analysis

The EURUSD pair fell sharply today and traded below the 200 simple moving average on the 4-hours chart. The worst part was the fact that the 1.0800 support area was cleared by sellers, pointing towards more losses in the near term.

There was a support trend line on the 4-hours chart, which was broke to clear the way for a decline. The pair is currently heading towards the 61.8% Fib retracement level of the last wave from the 1.0539 low to 1.1062 high where buyers may appear.

On the upside, the broken 200 SMA (H4) may act as a hurdle for a correction.

Euro Zone CPI

Today, there was a major release in the Euro Zone, as the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by Eurostat. The market was expecting an increase of 0.3% in December 2015, compared with the same month a year ago. However, the outcome missed the mark, as the CPI rose only 0.2%.

Similarly, the Core CPI was disappointing, as the forecast was of a 0.9% rise but the actual was 0.8% in December 2015, compared with the same month a year ago.

The EURUSD pair traded lower after the release and it looks like it may continue to trade lower in the short term.

This entry was posted on Tuesday, January 5th, 2016, 11:44 am and is filed under Featured, Latest News, Need to Know, Popular News.
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